Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

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[syamfx2020]

It is a busy week ahead for both the US Dollar and the Euro. Both Eurozone and US will publish their second-quarter GDP numbers on Thursday. EUR/USD started the week on positive note supported by a weaker US dollar and during the European session, the pair retreated to below 1.1700 from the daily high of 1.1725.

EQUITIES

Global stocks trading mixed on Monday as Investors fears about rising tensions between the U.S. and China and surging coronavirus cases. Last week Wall Street closed lower, the Dow Jones declined 0.7% and the S&P 500 lost 0.2%. This week the investors and traders will closely monitor big US giants’ quarterly earnings results including FAANG group of companies and Starbucks, Pfizer, Boeing, Visa and Mastercard etc.

OIL

Crude oil price trading slightly lower on Monday after OPEC+ confirmed it would reduce the size of its output cuts to 7.7 million barrels a day from August 1st, which would add nearly 2 million barrels to daily production levels.

CURRENCIES

The dollar index trading near to 2- year low on Monday ahead of Fed's monetary policy decision on Wednesday. Meantime the commodity currencies the Australian dollar and New Zealand dollar failed to break the previous week highs of 0.7180 and 0.6690.

GOLD

Gold prices surged to a fresh all-time high of $1944 on Monday during the Asian session boosted by a large-scale decline in USD and escalating tensions between the US and China after Beijing ordered Washington to shut its Chengdu consulate.

Economic Outlook

On the data front, The IFO Business Climate indicator for Germany rose by 4.2 points from the previous month to a five-month high of 90.5 in July 2020, beating market expectations 89.3. “The German economy is recovering step by step,” IFO President Clemens Fuest said in a statement.

On Sunday, the US Biotech company Moderna said it has received an additional $472 million (€404.94 million) from the US government to support the development of its COVID-19 vaccine.

Coronavirus update:

The world has now seen over 16 million coronavirus cases with over 644,000 lives lost to COVID-19, according to the US-based Johns Hopkins University. The United States has become the worst-affected country, with more than 4.2 million diagnosed cases and at least 146,788 deaths. On Monday China reported 61 new COVID-19 cases, the highest number of coronavirus cases in three months.

Technical Outlook

XAU/USD: The yellow metal trading steady above $1940 on Monday supported by $1900 psychological level.

The important levels to watch for today: Support- 1935 and 1920 Resistance- 1944 and 1953.



EUR/USD: The currency pair approaches to overbought zone after hitting a fresh year high of 1.1725.

The important levels to watch for today: Support- 1.1660 and 1.1630 Resistance- 1.1730 and 1.1770.


Quote of the day: Stick to your investment strategy - do not turn temporary declines to permanent losses - Warren Buffet


Read more- https://gulfbrokers.com/en/daily-market-report-133

 

[syamfx2020]

Important economic releases this week: FOMC meeting, US and Eurozone Q2 GDP and Oil inventories.

Earnings to watch - Apple, Amazon, Facebook, Boeing, Google, Starbucks, Visa and Mcdonald's.

 

[syamfx2020]

GOLD price this year 30%, the yellow metal has broken the previous all-time high of $1921 and touched $1944 per ounce today. Moving ahead this week’s movements are crucial for future directions.

 

[Farm_Yard_Forex]

Resistance of 1.1750 appears to have held for now

 

[Farm_Yard_Forex]

Just keeps climbing. No real let up at the moment.

 

[syamfx2020]

Global stocks start the week on a mixed note as investors remained cautious about the ever-increasing coronavirus cases and worsening US-China relations. While on Tuesday US futures and Nasdaq composite recovered from the previous session lows as investors braced for another big round of corporate earnings. On Friday last week, the NASDAQ Composite ended lower for a second consecutive week after mixed earnings results from INTEL (NASDAQ: INTC). Intel shares plunged 16% after the chipmaker revised downwardly its guidance for Q3 and delayed the release of its next-generation chips. IBM, Microsoft, and SNAP these are the other major technology company shares dropped last week after reporting quarterly earnings.

This week the main attention will be on the earnings season with more of the FAANG group of companies reporting their quarterly earnings. Facebook, Apple, Amazon, and Alphabet are among the big giants to report this week. These are the most popular momentum stocks which are largely responsible for the stock market’s gains over the past few years and these four Big Tech combines for more than $5 trillion in market value.

Tech stocks steady ahead of Q2 earnings

Advanced Micro Devices (NASDAQ: AMD) kicks off tech earnings on Tuesday. The chipmaker will announce its second-quarter 2020 financial results after market close on Tuesday. Meanwhile, Facebook (NASDAQ: FB) said on Monday that the company plans to report second-quarter earnings Thursday instead of Wednesday "due to a scheduling conflict." Along with Facebook, the other tech giants Alphabet Inc. (NASDAQ: GOOGL) and Apple Inc. (NASDAQ: AAPL) is scheduled to report second-quarter 2020 results on Thursday after market close. $AAPL stocks fell last week after the company delayed its iPhone launch to October and the shares have climbed 20% this year.

The largest e-commerce company Amazon (NASDAQ: AMZN) is slated to report its earnings after the markets close on Thursday. AMZN stock has surged around 30% since the company reported its first-quarter earnings on April 30. The stock rally added $13 billion to Amazon CEO Jeff Bezos’s wealth, pushing his net worth to $189 billion and cementing his position as the world’s richest man.

There are few other major companies also reporting quarterly results this week.

• McDonald’s Corp (NYSE: MCD) – before the markets open on Tuesday.
• Starbucks Corporation (NASDAQ: SBUX) – after market close on Tuesday.
• Visa Inc (NYSE: V) - after market close on Tuesday.
• Pfizer (NYSE: PFE) - before the markets open on Tuesday.
• Harley-Davidson (NYSE: HOG) - before the markets open on Tuesday.
• eBay Inc. (NASDAQ: EBAY) – after market close on Tuesday.
• Boeing Co (NYSE: BA) - before the markets open on Wednesday.
• Spotify Technology (NYSE: SPOT) - before the markets open on Wednesday.
• PayPal (NASDAQ: PYPL) - after market close on Wednesday.
• Qualcomm Inc. (NASDAQ: QCOM) – after market close on Wednesday.
• Mastercard NYSE: MA - before the markets open on Thursday.
• Gilead Sciences (NASDAQ: GILD) - after market close on Thursday.
• Exxon Mobil Corporation NYSE: XOM - before the markets open on Friday.
• Pinterest Inc. (NYSE: PINS) - before the markets open on Friday.
• Caterpillar Inc. NYSE: CAT - before the markets open on Friday.

 

[syamfx2020]

EUR/USD climbed back to near the Monday high of 1.1780 ahead of FOMC rate decision. Any break above 1.1780 the next immediate resistance at 1.1810/30. On the downside, the first support to watch 1.1700 (Tuesday low) followed by 1.1650.

 

[syamfx2020]

It a big day for the US dollar and the Dollar index sitting near to key support level of $93.50. The traders and investors remained cautious of FOMC interest rate decision and the Fed Chair Jerome Powell press conference. Fed is expected to hold its federal fund's rate steady and the key focus will be on the FED statement.

EQUITIES

On Tuesday, Wall Street ended lower after some large US companies reported weaker-than-expected earnings including McDonald's (NYSE: MCD), VISA (NYSE: V), and eBay (NASDAQ: EBAY). While Pfizer (NYSE: PFE) shares closed 3% up after the company reported better-than-expected Q2 earnings.

OIL

Crude oil price trading higher on Wednesday supported by API data. The data showed in the US the crude inventories unexpectedly fell by 6.8 million barrels from previous 7.544 million.

CURRENCIES

The dollar index struggling to find the upside momentum ahead of FOMC decision. On Tuesday, the Index slightly recovered from the previous session losses but failed to break above 94 levels. At the writing, the pair trading below the previous support of 93.50. Meanwhile, the Australian dollar surged to a fresh year high of 0.7190 during the European session.

GOLD

The gold price hovers near to the all-time high on Wednesday ahead of US central bank interest rate decision and statement.

Economic Outlook

On the data front, Spain retail sales rebounded to -4.7% in June from 18.9% slump in the previous month. While Consumer prices in Australia dropped by 0.3% in Q2 2020, slightly below the market expectation of a 0.4% fall and after a 2.2% rise in Q1.

Moving ahead today, the important events to watch:

US Pending home sales report – 14.00 GMT

US crude oil inventories– 14.30 GMT

US FOMC Interest rate decision – 18.00 GMT

US FOMC Press Conference – 18.30 GMT

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 16.7 million, of which at least 660 thousand people have, according to data released by the Johns Hopkins University. The US accounted for the world's highest number of infections and fatalities at 4,287,974 and 148,009, respectively. The coronavirus pandemic "continues to accelerate," with a doubling of cases over the last six weeks, the World Health Organization chief said.

Technical Outlook

XAU/USD: Gold price climbed back to above $1950. On Tuesday, the yellow metal price dropped to near $1900 after surged to an all-time high of $1980.

The important levels to watch for today: Support- 1920 and 1900 Resistance- 1980 and 1995.

EUR/USD: The currency pair trading in a range between 1.1700 to 1.1770 ahead of FED meeting after the pair climbed to near 2-year high of 1.1780 on Monday.

The important levels to watch for today: Support- 1.1710 and 1.1670 Resistance- 1.1780 and 1.1810.

Quote of the day: Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected – George Soros.


Read more- https://gulfbrokers.com/en/daily-market-report-134

 

[syamfx2020]

Germany's GDP contracted by 10.1% in the second quarter of 2020, weaker-than-expected compared to the market expectations of a 9.0% contraction. "This was the sharpest decline since the quarterly GDP calculations for Germany began in 1970," the statistics office said. Meanwhile, the German Unemployment Rate unchanged at 6.4% for the current month and the Unemployment Change decreased by 18K. Moving ahead to the North American session, the US will release the last quarter GDP numbers. The world’s largest economy is expected to see its GDP contract about -34% in the last quarter versus -5% prior.

EQUITIES

European stocks and DAX trading near the session low after the data showed on Thursday disappointing German GDP numbers and mixed employment data. During the Asian session, the Japanese stocks ended 1.1% lower, amid weak earnings by several big-cap companies.

OIL

Crude oil price trading lowers on Thursday, amid fears over a resurgence in coronavirus infections across the globe that could slow recovery in fuel demand.

CURRENCIES

The dollar index recovered from the previous session losses after the Federal Reserve signalled support for the economy. While the commodity currencies like the Australian dollar and New Zealand dollar trades near the week low On Thursday.

GOLD

Gold price slightly retreated from the all-time high, at the time of writing the precious metal trading below $1960.

Economic Outlook

On Wednesday, after two days of meeting the Federal Open Market Committee reiterated plans to keep interest rates near zero until the economy sees further improvement. The Fed Chairman Powell hinted that the economy would need additional support measures to cope with the outbreak of the economic crisis. “The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in keeping the virus in check,” Powell said.

Moving ahead today, the important events to watch:

US Initial weekly Jobless claims – 12.30 GMT

US Second-Quarter GDP – 12.30 GMT

The important earnings to watch today: Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Gilead Sciences (NASDAQ: GILD).

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 17 million, of which at least 667 thousand people have, according to data released by the Johns Hopkins University.


Technical Outlook

XAU/USD: The yellow metal price dropped almost 25$ after the price found double top near the all-time high of $1980.

The important levels to watch for today: Support- 1940 and 1920 Resistance- 1980 and 1995.


GBP/USD: The currency pair trading below the psychological level 1.30, during the previous session the pair traded above 1.30 after the Fed statement.

The important levels to watch for today: Support- 1.2940 and 1.29 Resistance- 1.13010 and 1.3040.


Quote of the day: Only buy something that you would be perfectly happy to hold if the market shut down for 10 years - Warren Buffet.


Read more - https://gulfbrokers.com/en/daily-market-report-135